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Business, 27.07.2021 16:50 jaqwannewsome

Using a required reserve ratio of 10% and assuming that banks keep no excess reserves, which of the following scenarios produces a larger increase in the money supply? I. Someone takes $1,000 from under the mattress and deposits it into a checking account. II. The Fed purchases $1,000 worth of government securities from a commercial bank.

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Using a required reserve ratio of 10% and assuming that banks keep no excess reserves, which of the...
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